Former funeral home employee Marti James Schrauben appeared in Ionia County 8th Circuit Court late Tuesday morning before Judge David Hoort to enter pleas to five counts against him related to charges that he allegedly embezzled nearly $500,000 from customers and insurance companies from 2008 through 2010 while he was an employee at Schrauben-Lehman Funeral Home in Ionia.

The benches on the prosecution's side of the court room were nearly filled. Michael Lehman, owner of Lehman Funeral Home, sat with his wife Lisa in the front row.

Schrauben, of Portland, pleaded guilty to one count of uttering and publishing, which is a 14-year felony.

In a prepared statement, he admitted preparing a false death certificate and presenting it to an insurance company, knowing it was false.

Schrauben also pleaded no contest to four other counts: one count of forgery, a 14-year felony; one count of uttering and publishing, a 14-year felony; one count of insurance fraud, a five-year felony; and one count of embezzlement over $50,000 but less than $100,000, a 15-year felony.

Schrauben originally was charged with 27 counts related to racketeering, embezzlement and other crimes. He allegedly created false death certificates and sent them to insurance companies to receive payment from funeral policies. He also allegedly accepted money for pre-paid funerals from customers of the funeral home and then, instead of placing the money into escrow accounts as required by state law, embezzled the money.

Under the terms of the plea agreement, Schrauben agreed to pay full restitution of $496,381.70, an amount verified by the complainants and confirmed through an audit by the Michigan Department of Licensing and Regulatory Affairs (LARA). Schrauben's attorney also asked to audit the amounts. The plea document stated that, although both parties are in "substantial agreement" over the amount of restitution, either can request a restitution hearing.

The amount to be paid back includes more than $184,000 for funerals provided by Schrauben-Lehman Funeral Homes without compensation. Lehman said in an interview with the Ionia Sentinel-Standard in July than he was honoring the funeral agreements customers made with the funeral home.

"You can't ask the family for more money," he said. "Trust is very important to me – it's an important word. You've got to have trust from the people you serve."

Restitution also includes $54,000 paid to Schrauben Management instead of the funeral home for deposit into escrow, more than $82,000 in unearned interest from unfunded escrow or insurance policies cashed out early; almost $47,000 for funds taken from the funeral home's trust account; and nearly $129,000 for cashed out insurance policies.

The agreement calls for Schrauben to pay $50,000 to Lehman on the date of his plea and voluntarily relinquish his state mortuary license within 14 days of the plea.

In addition, his sentencing will be delayed for six months to allow him time to make another partial restitution payment of $200,000 to Lehman on or before his sentencing date. If he makes that payment as required, the remaining 22 counts against him will be dismissed. If Schrauben fails to make the payment as required, the plea agreement will be withdrawn and he will go to trial on the original charges.

Page 2 of 2 - Schrauben must pay the balance of $246,381.70 in restitution during a five-year term of probation.

The plea agreement also calls for the court to decide how much incarceration Schrauben could receive, but that will not exceed 12 months in the Ionia County Jail.

Hoort ordered a pre-sentencing report and a DNA sample from Schrauben.

William Rollstin, assistant attorney general for the State of Michigan, who appeared in court on behalf of the People, told Hoort that in reaching a settlement, he consulted with Michael and Lisa Lehman, "who don't view this as a perfect result but a move to financial stability." He noted that he, the Lehmans, and Ionia County Undersheriff Charlie Noll, who investigated the case, "agree we should move forward."

The charges against Schrauben resulted from an investigation conducted by the Ionia County Sheriff's Department after a complaint was filed by the funeral home's owner. Schrauben was arrested July 26.